
Accounting Standards: For uniformity and transparency, all the companies and business entities are required to maintain their accounting records under the frame work of rules and guidelines set by the Accounting standards setting bodies in consultation with the professional accountants and the business. The Financial Accounting Standards Board (FASB) issues accounting standards called as Generally Accepted Accounting Principles (GAAP) for Country U. On the other hand, the International Accounting Standards Board (IASB) issues accounting standards known as International Financial Reporting Standards (IFRS) for the countries other than Country U.
To identify: The terms which are commonly used under IFRS are synonymous with common stock and

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Chapter 2 Solutions
Financial Accounting
- I need help solving this general accounting question with the proper methodology.arrow_forwardNo AI The accounting principle that requires matching revenues with related expenses is the:A. Going Concern PrincipleB. Matching PrincipleC. Cost PrincipleD. Full Disclosure Principlearrow_forwardRevenue is recognized in the accounting records when it is:A. CollectedB. EarnedC. DepositedD. Reportedarrow_forward
- The accounting principle that requires matching revenues with related expenses is the:A. Going Concern PrincipleB. Matching PrincipleC. Cost PrincipleD. Full Disclosure Principlearrow_forwardWhich account is a contra-asset?A. Accounts PayableB. Accumulated DepreciationC. Notes ReceivableD. Prepaid Rentneedarrow_forwardIf cash is received before services are provided, what is the journal entry?A. Debit Revenue, Credit CashB. Debit Unearned Revenue, Credit CashC. Debit Cash, Credit Unearned RevenueD. Debit Accounts Receivable, Credit RevenueCorrectarrow_forward
- If cash is received before services are provided, what is the journal entry?A. Debit Revenue, Credit CashB. Debit Unearned Revenue, Credit CashC. Debit Cash, Credit Unearned RevenueD. Debit Accounts Receivable, Credit Revenuecorrectarrow_forwardGAP Corp. is a calendar year S corporation with three shareholders. George and Anna each own 49 percent of the stock. Peter owns 2 percent of the stock. The corporation was formed on January 2, Year 1, and has been an S corporation since its inception. Using the exhibits, prepare a schedule of GAP's income, gain, loss, and deduction items for Year 2. In column B, enter the amount for federal income tax purposes. In column C, enter the amount included in GAP's Form 1120S ordinary business income (OBI) or loss. In column D, enter the amount included on GAP's Schedule K as a taxable or deductible separately stated item. Each item may have amounts entered in ordinary business income, separately stated items, or both. Enter income and gain amounts as positive numbers. Enter losses and deductions as negative numbers. If the amount is zero, enter a zero (0). A B C D 1 Income, Gain, Loss, and Deduction Items Amount for Federal Income Tax Purposes Ordinary Business Income…arrow_forwardIf cash is received before services are provided, what is the journal entry?A. Debit Revenue, Credit CashB. Debit Unearned Revenue, Credit CashC. Debit Cash, Credit Unearned RevenueD. Debit Accounts Receivable, Credit Revenue need helparrow_forward
- Dennis Green and Peter Olinto are equal partners in Foxy Partnership. Peter is an active general partner. Dennis is a limited partner and is not involved in the operations of the business. Foxy Partnership's Year 2 financial statements are provided in the exhibits. Using the information provided, enter the appropriate amounts to be reported on page 1 of Foxy Partnership's income tax return in the table below. Enter all amounts as positive whole values. If a response is zero, enter a zero (0). A B 1 Gross receipts or sales 2 Cost of goods sold 3 Salaries and wages 4 Guaranteed payments to partners 5 Repairs and maintenance 6 Bad debts 7 Rent 8 Depreciation 9 Other deductions 10 Ordinary business income (loss)arrow_forwardDennis Green and Peter Olinto are equal partners in Foxy PartneDennis Green and Peter Olinto are equal partners in Foxy Partnership. Peter is an active general partner. Dennis is a limited partner and is not involved in the operations of the business. Foxy Partnership's Year 2 financial statements are provided in the exhibits. Using the information provided, enter the appropriate amounts to be reported on page 1 of Foxy Partnership's income tax return in the table below. Enter all amounts as positive whole values. If a response is zero, enter a zero (0). 2. Cost of goods sold 3. Salaries and wages 4. Guaranteed payments to partners 5. Repairs and maintenance 6. Bad debts 7. Rent 8. Depreciation 9. Other deductions 10. Ordinary business income (loss)arrow_forwardIf a business pays off a loan, which of the following will occur?A. Assets and liabilities increaseB. Assets and liabilities decreaseC. Only liabilities increaseD. Equity decreasesarrow_forward
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